Bed Bath & Beyond, Inc. · NYSE:BBBY
Bed Bath & Beyond — Q4 2018 Earnings Presentation
18 slides from Bed Bath & Beyond's earnings presentation, Apr 10, 2019
Slide 1: Fiscal 2018 Fourth Quarter Earnings Call
Exhibit 99.2 Fiscal 2018 Fourth Quarter Earnings Call April 10, 2019
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may contain forward-looking statements, including, but not limited to, anticipated net earnings per diluted share and operating margin. Many of these forward-looking statements can be identified by use of words such as may, will, expect, anticipate, appro
Slide 3: Our Mission
Our Mission To be the trusted expert for the home and heart-felt life events. 2
Slide 4: Bed Bath & Beyond's Strategic Advantages
Bed Bath & Beyond’s Strategic Advantages Strong brands that are Omni-channel capabilities Deep expertise in whole trusted by customers with a leveraging both physical and home across all important reputation for quality digital assets life stages 1,500+ physical locations across A solution for every
Slide 5: Responding to the Challenging and Dynamic Retail Environment
Bed Bath & Beyond is Responding to the Challenging and Dynamic Retail Environment Dynamic Retail Environment Bed Bath & Beyond’s Response • Dramatic shift to omnichannel – customers • Complete transformation of Bed Bath & demanding a seamless, convenient Beyond’s business over the past 18 months exp
Slide 6: Achieving Our Strategic Focus, Key Objectives and Financial Goals
Overview Achieving Our Strategic Focus Driving Our Key Objectives Financial Goals • Product Assortment • Mid-and-Long Term • Fiscal 2018: Strong bias towards Revenue Growth profitability over near-term sales, moderating the declines in operating • Shopping Experience profit and EPS • Near-term and O
Slide 7: Key Objectives of Bed Bath & Beyond's Transformation
Key Objectives of Bed Bath & Beyond’s Transformation Bias toward profitability across all decision making Drive Mid-and-Long-Term Drive Near-term and Ongoing Drive Near-term and Ongoing Revenue Growth Gross Margin Improvements SG&A Improvements • Concept Strategy/ • Merchandise Mix • Store Labor Mod
Slide 8: Initiatives Driving Revenue Growth
Initiatives Driving Revenue Growth Key Initiatives Detail Concept Strategy/ . Completed full portfolio review and developed a Brand Vision product strategy Proprietary Brands . Launched first of 6 new private label home furnishings brands & Private Label . Focused on growing preferred brands . Testi
Slide 9: Initiatives Driving Gross Margin Improvements
Initiatives Driving Gross Margin Improvements Key Initiatives Detail . New portfolio strategy implemented Merchandise Mix . Operational team in place to support merchants . Rollout of private label brands . New pricing team and software now in place Value Optimization . Customizing the timing and de
Slide 10: Initiatives Driving SG&A Margin Improvements
Initiatives Driving SG&A Margin Improvements Key Initiatives Detail . Optimization of store labor model . Realignment of field support structure Store Labor Model . Reduction of labor-intensive tasks . Reduction in store payroll (% of sales – FY18) . Increased efficiency of direct mail events and Ma
Slide 11: Initiatives Providing World-Class Operational Support
Initiatives Providing World-Class Operational Support Key Initiatives Detail . Added 20+ new leaders, including industry Reconstructed experts, some in newly constituted roles . Migrated hundreds of associates into new teams Teams/ How we . Utilized world-class external consulting support Work . Cre
Slide 12: Business Stabilizing, In-Flight Initiatives Poised to Deliver Impact in Q1 and FY 2019
Bed Bath & Beyond: Business Stabilizing, In-Flight Initiatives Poised to Deliver Impact In Q1 and FY 2019 2019 Q1 2019 Full Year 2019 Key Drivers . Store traffic declines Consolidated . Strong growth in digital channels ~$2.6 bn $11.4 - $11.7 bn Net Sales . Bias toward driving profitability . Furthe
Slide 13: Re-Positioning for Sustainable Growth in FY 2020 and Long Term
Bed Bath & Beyond: Re-Positioning for Sustainable Growth in FY 2020 and Long Term 2020 Long-Term Target Key Drivers . Revenue driving initiatives begin to impact 2020: – Enhancing assortment incl. proprietary brands and private label Consolidated – Scaling learnings from Next Gen Stores Net Sales $1
Slide 14: Capital Allocation Framework
Bed Bath & Beyond’s Capital Allocation Framework Bed Bath & Beyond has a disciplined capital allocation framework that balances: (1) organic investment and financial stability to ensure long-term success; and (2) return of excess capital to our shareholders through dividends and share repurchases •
Slide 15: Appendix
Appendix 14
Slide 16: Q4 2018 Summary
Q4 2018 Summary • Net loss per diluted share of ($1.92), including a non‐cash goodwill and tradename impairments charge • Adjusted net earnings per diluted share of $1.20, excluding the impairments charge • Operating profit margin deleverage less than prior year period, excluding the impairments cha
Slide 17: Q4 2018 P&L Summary
Q4 2018 P&L Summary* (amounts in millions, except comp %, and per share data) Adjusted* Three Months Ended March 2, 2019 % of Sales March 3, 2018 % of Sales Change Comp Sales % (a) (1.4) (0.6) Net Sales $3,308 100.0 $3,716 100.0 Gross Profit 1,147 34.7 1,333 35.9 (1.2) (b) SG&A Expenses 934 28.2 996
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation (amounts in thousands, except per share data) (unaudited) Three Months Ended March 2, 2019 Reconciliation of Adjusted Operating Profit Reported operating loss $ (296,735) Adjustments: Goodwill and tradename impairments (a) 509,905 Total adjustments 509,905 Adjusted operating